New Mexico Solar Information

New Mexico isn't a bad state for solar but far from the strongest. There is a state tax credit that reduces your income tax. Along with basically wiping out your state income tax although not required by the state the three major utilities servicing all of Idaho offer net metering. As always in Idaho you are entitled to the 30% federal tax credit.
  • #2
    New Mexico ranks in America for savings from installing solar panels on
  • #7637.80 kWh
    AC Energy output every year in New Mexico in 4 kW system
  • #6.55 kWh
    Solar Radiation (kWh / m2 / day)
  • 14 ¢ /kWh
    The cost of electricity today in Central New Mexico Electric Coop Inc
  • 30 ¢ /kWh
    If you don't get solar. The forecast average utility price over the next 25 years

California Solar Facts

  • $1.61
    Average cost of a 4kw solar power system in 2019.
  • 3 years
    Average system payback period.
  • $64 948
    Average lifetime savings.
  • 5 ¢ /kWh
    Levelized cost of solar energy.
  • 4 kW
    Recommended system size.

The solar energy industry in New Mexico has been growing steadily in the past few years, and today, the state gaining more influence in the solar power market. New Mexico’s solar panels installations have been increasing exponentially creating jobs across the state, providing benefits of energy independence, and, certainly, helping preserve the environment.

New Mexico Solar Facts

  • New Mexico has the most generous Net Metering Program in the country.
  • The state’s Renewable Portfolio Standard requires investor-owned utilities to supply 20% of electricity from renewable energy by the year 2020.
  • New Mexico is the home to both Los Alamos National Laboratory and Sandia National Laboratories, some of the world’s largest science and technology facilities that conduct research in solar power generation.
  • New Mexico gets 300+ sunny days a year on average and solar will work here better than in most states.

The Cost of Solar Panels in New Mexico

A typical out of the pocket cost of installation of the 5kW solar panel system in New Mexico is from $14,000 to $20,000 before the Federal Solar Credit.

The state’s cost of solar panels per watt is $3.30/W. The expected net 20-years savings are anywhere from $25,000 to $34,000.

The payback period ranges from 7.9 to 10.7 years.

New Mexico Solar Rebates and Tax Credits

The Federal Investment Tax Credit – the government program that allows you to claim 30 % of the cost of your solar equipment and its installation on your federal taxes.

Sustainable Building Tax Credit - you will get a credit on your taxes from the New Mexico State government if you install solar panels on your home. To qualify for the program, the US Green Building Council has to certify your house as sustainable. The certification level will determine the value of the credit.

Solar Property Tax Exemption – when the installation of solar increases the property value, homeowners are exempt from paying property taxes on that increased value.

  • How much do solar panels cost in New Mexico
  • $1.61
    per watt
  • $5 215
    total
  • 3
    years

Pros and Cons of Buying Solar Panels in New Mexico

Advantages:

  • +

    Relatively short payback period

    The typical payback period for New Mexico as of today ranges from seven to ten years. It is a time that it will take you to completely repay your solar power equipment. This time will heavily depend on factors like the amount of sun in your area, incentives, and the cost of electricity. However, with solar prices continuously falling and panels becoming more and more efficient, the payback period is getting shorter and shorter.
  • +

    After the payback period, solar power is nearly free

    When your solar energy system entirely paid off for itself, the electricity that it generates comes at no cost to you.
  • +

    Great savings on a monthly electric bill

    When your solar energy system is installed on your home, you have the ability not only to generate your own electricity but also to be less dependent on your local utility company. That gives you a great advantage of not worrying about utility rate inflation and saving money on your monthly electric bill. The savings might be even bigger with the great Net Metering Program that New Mexico offers to its residents.
  • +

    Helping the environment since solar energy is clean, sustainable, and renewable

    Solar power is a truly renewable and sustainable energy source. We cannot run out of solar energy and it is available every day all over the world. Unlike some of the traditional sources of energy, solar power is clean since the generation of solar energy does not lead to any pollution. Solar is proven to decrease our carbon footprint by reducing air and water pollution.
  • +

    Support from the government and the state

    Thanks to the financial help from the federal government tax program and various state incentives and rebates, the installation cost of solar energy systems went significantly down. Some people see as much as 50% savings on their solar panel equipment.
  • +

    Very low maintenance

    Solar power systems do not require a lot of maintenance. They only need to be kept free of dirt and debris. They do not have any moving parts, so there are going to be no wear and tear. In addition, solar panels do not produce any noise when in use.
  • +

    Excellent warranty protection

    Today, the majority of solar panels come with a 25-year-long performance guarantee, which ensures efficient energy production for at least 25 years. Furthermore, solar panels come with extended warranties (up to 25 years) that guarantee to repair defective equipment, breakage or any deficit in the performance that might arise.
  • +

    Increase in the property value

    The recent study by the Appraisal Institute showed that the solar panel installation adds value to your home. According to Zillow.com, adding a solar energy system on average will raise your house value by 4.1%. Today, the homebuyers are willing to pay more for houses with solar power systems.

Disadvantages:

  • -

    The possible high initial cost

    The initial expenses of the solar energy system installation can be rather high after taking into account paying for solar panels, battery, inverter, all the necessary accessories, mounting equipment, and the installation itself. Nevertheless, multiple federal and state subsidies are available to help with these costs. In addition, solar technologies are constantly evolving, which should bring the solar panel price down even more.
  • -

    Need to have a large, open area for installation

    The more energy you want to generate, the more solar panels you have to install. Sometimes it might become a problem if your house does not have enough open, non-shaded space on its roof. Luckily, you can install the solar panels not only on the roofs but on the ground as well, provided they do have direct access to sunlight.
  • -

    Must be a property owner to install

    Today, solar power installation is mostly available to homeowners with good credit and/or good income. The solar benefits are not yet available to renters, people with low-income, or people without a job.

After comparing the advantages and disadvantages of going solar in New Mexico it is obvious that the advantages clearly outweigh the disadvantages. Plentiful sunshine and great solar incentives make New Mexico one of the best places in the country to go solar both for home and business owners.

New Mexico Solar Incentives

Net Metering Program

A statewide program that is available to all customers of any investor-owned utility companies and electric cooperatives within New Mexico. The utility company will compensate its customers for the excess electricity by either paying them for that electricity at the utility’s energy rate or by crediting the customer’s account. Unused credits are carried over from month to month. If a customer decides to leave this particular utility company, the unused credits are paid to them at the utility’s energy rates.

El Paso electric renewable energy certificate purchase program

El Paso Electric Company offers its customers to earn some extra money by participating in their renewable energy certificate purchase program. The utility company pays 2 cents per kWh of electricity generated by its customers’ solar power systems.

Farmers Electric Cooperative Renewable Generation Rebate.

If you are a customer of Farmers Electric then you are eligible to up to $500 rebate for the installation of a new solar power system up to 50kW. The rebate form is available on their website.





According to Central New Mexico Electric Coop Inc, we received the cost of kWH in your area and calculated energy consumption based on an average electricity bill for 3 months.
I am claiming the 30% Federal Tax Credit (ends 2019) i

When you install your solar system, 30% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is being phased out by 2022.

Most people are eligible to claim this credit (you must owe federal taxes to be eligible).

Relevant product for your system

Entry-level solar panels
See all panels
Entry-level microinverter
See all microinverters
Entry-level inverter
See all inverters
  • Mini
  • Small
  • Medium
  • Large
We recommended
3.24 kW medium system size
Provides up to 80% of electricity consumption
$1.61 per watt
Average system cost
  • image rec 3
    10 x 325 watt
    solar panels
  • +
  • image rec 3
    10 x 300 watt
    microinverter
  • +
  • image rec 3
    1 x 5 000 watt
    inverter
$111.21
in month. Estimated savings
on your average quarterly bill
  • $5 214.61
    Estimated system cost
    Excludes 30% Federal Tax Credit.
    This price does not include the installation cost.
  • 3 years
    Average system
    payback period
  • $64 948.31
    Estimated utility savings

Example of 4 kW system calculation in Minnesota for electricity bill $100

  • 14 ¢ /kWh
    The cost of electricity today in Central New Mexico Electric Coop Inc
  • 30 ¢ /kWh
    If you don't get solar. The forecast average utility price over the next 25 years
  • 5 ¢ /kWh
    levelized cost of solar energy

Get the results of the calculation in the mail

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